In May 2019, Professional Soils Laboratory (PSL), a leading soil testing laboratory, embarked on a transformative journey by joining Phenna Group.
At the time, PSL was facing a crossroads: Anthony Watkins, a founding partner of PSL, had been considering options after his business partner of 15 years decided to exit due to personal circumstances. Instead of securing bank financing to buy out his partner’s share, Anthony saw the opportunity to partner with an ambitious TICC business that could support growth while allowing PSL to retain operational autonomy.
This case study explores PSL’s acquisition journey, post-acquisition support, success, and future outlook.
About PSL
PSL is a UKAS-accredited geotechnical and materials testing facility established in July 2004. Strategically located in Doncaster, with a dedicated team of laboratory and field staff, PSL has swiftly risen to become one of the UK’s premier geotechnical laboratories.
Their central location provides them with excellent access to the A1 / M18 / M1 and M62 motorways, enabling them to meet their clients’ needs wherever they may be.
Services Include:
Classification Testing
Effective Stress Soil Testing
Shearbox Testing
Permeability Testing
In-Situ Geotechnical Testing
The Acquisition Journey
PSL’s introduction to Phenna Group occurred early in the company’s development, with Paul having only recently established the organisation.
Despite having several offers from larger companies, Anthony was struck by Paul’s unique approach. Unlike typical acquisition offers, Paul assured that Phenna Group would remain hands-off in day-to-day operations, a commitment that resonated with Anthony’s desire to maintain PSL’s distinct identity and autonomy.
The appeal of not being absorbed into a larger corporate structure, where they might become ‘just a number,’ ultimately influenced Anthony’s decision to join Phenna Group over other, more aggressive suitors.
The acquisition process was marked by open communication and support from Paul and his team. Anthony felt that Paul was “a man of his word,” which bolstered PSL’s confidence that they were entering a partnership based on trust and shared values.
Throughout the negotiations and onboarding, PSL experienced regular check-ins from Paul and the Phenna team, reassuring them that their independence would be respected and that the acquisition would create mutual benefits.
A Seamless Transition and Positive Impact
The transition to becoming a Phenna Group company was seamless for PSL, with little immediate impact on employees or internal culture. Anthony’s son, who had worked his way up in the company from handling samples in the stores to taking on managerial responsibilities, was a testament to the company’s stable culture and growth opportunities. Over time, Phenna Group has introduced some new initiatives to enhance employee support and resources, which PSL readily embraced.
Post-Acquisition Growth and Support
Since joining Phenna Group, PSL has experienced remarkable growth. At the time of acquisition, the company had a turnover of approximately £3.5 million. Fast-forward to last year, and that number has more than doubled, through organic growth and the support from Phenna.
This growth trajectory was partly driven by a booming post-COVID construction industry, which increased demand for soil testing services. Throughout the pandemic, PSL continued operations and remained “unscathed,”. During COVID, PSL received essential HR guidance from Gaynor Lloyd, Group HR Director, who helped them navigate the crisis smoothly.
In addition to strategic support, Phenna Group provided PSL with significant financial backing. This included funding for new equipment that expanded PSL’s capacity for specialised testing, as well as access to training resources at no additional cost, including the iHasco training platform, which provided comprehensive training for all employees.
PSL also benefitted from the group insurance available to all group companies, securing increased coverage and reduced premiums.
Over the five years since the acquisition, PSL saw Phenna materially scale its operations in the UK. This gave Antony access to a “family” of fellow founders and entrepreneurs who shared the same values and contributed to his organic growth by redirecting additional business to PSL. He also welcomed the opportunity to participate in joint tenders alongside other Phenna Group companies. According to Anthony, this financial backing and support has been invaluable, allowing PSL to scale and modernise its operations while still maintaining the autonomy it values.
Success and Future Outlook
Since the acquisition, PSL has achieved significant milestones, doubling its turnover and EBITDA. Looking ahead, PSL aspires to maintain this momentum and become the leading Soil Testing Laboratory in the country. Being part of Phenna Group aligns with this vision, offering PSL the stability and resources to continually improve and innovate within its sector.
Reflecting on the acquisition decision five years later, Anthony remains confident that joining Phenna Group was the right decision. The acquisition enabled a seamless exit for his partner while providing a supportive framework for PSL to grow without sacrificing its core identity.
To other businesses considering a partnership with Phenna, Anthony emphasises the value of the group’s commitment to honouring its word, stating that the acquisition has “been great for all parties.”
Anthony Watkins
Managing Director
PSL’s acquisition by the Phenna Group has been a tremendous success, allowing them to more than double in size, whilst also retaining operational autonomy.